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Next steps for €672.5 billion EU recovery facility

The European Commission (EC) has set out guidance for the implementation of the Recovery and Resilience Facility in its 2021 Annual Sustainable Growth Strategy (ASGS).

The facility is the key recovery instrument at the heart of NextGenerationEU, which aims to help the European Union (EU) emerge stronger and more resilient from the current COVID-19 crisis.

IT will provide an unprecedented €672.5 billion of loans and grants in frontloaded financial support for the crucial first years of the recovery.

The publication of the ASGS launches this year's European Semester cycle. In last year's ASGS the Commission launched a new growth strategy based on the European Green Deal and the concept of competitive sustainability.

The four dimensions of environmental sustainability, productivity, fairness and macroeconomic stability identified then remain the guiding principles underpinning Member States' recovery and resilience plans and their national reforms and investments.

The implementation of the Facility will be coordinated by the Commission's Recovery and Resilience Task Force in close cooperation with the Directorate-General for Economic and Financial Affairs.

A Steering Board chaired by President Ursula von der Leyen will provide a political steer to the Task Force to help ensure the Facility is implemented in a coherent and effective manner.

President von der Leyen said: “The Recovery and Resilience Facility is at the very heart of NextGenerationEU. It is our key tool to turn the immediate challenges presented by the coronavirus pandemic into a long-term opportunity.

"Member States need clear guidance to ensure the Facility's €672 billion is invested both for Europe's immediate economic recovery, but also for long-term sustainable and inclusive growth.”

Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: "We should continue to support workers and companies during this crisis, while being mindful of preserving fiscal sustainability in the medium-term.

"We now call on the European Parliament and the Council to quickly reach the final agreement on the Recovery and Resilience Facility, so money can start flowing early next year. In a crisis, time is of the essence.”

Read more here.

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